REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MOMENTUM BROKER SOLUTIONS LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MOMENTUM BROKER SOLUTIONS LTD |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
MOMENTUM BROKER SOLUTIONS LTD |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
BANKERS: |
12-16 Lower Parliament Street |
Nottingham |
NG1 3DA |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
STRATEGIC REPORT |
for the year ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
The principal activity of the company continued to be that of insurance intermediary. |
REVIEW OF BUSINESS |
This is our 13th year of consecutive growth, however 2023 has been exceptional. Our AR partners have achieved impressive levels of growth and we have attracted a record number of new partners. As a result, our top and bottom-line performance have exceeded expectations. Our emphasis on quality has been repaid in the attraction of the best of new startups and by the performance of existing businesses. The business model which aligns our success to the success of our partners is a key factor in the business performance. |
We have an ongoing recruitment plan and are delighted to have welcomed 25 new colleagues during the year. We have also expanded our apprenticeship program, developing talent to meet the needs of the business now and in the future. We continue to invest in all areas of the business and key hires include a dedicated Quality and Compliance Director. Ensuring that we meet the highest standards of governance remains essential for the benefit of all our trading partners. We have also expanded our marketing team to support the promotion of both Momentum and our partners. Further investment has been made in the systems that support our business and our trading partners to ensure process efficiency and effective business support. |
Highlights of the year include: |
- | Placing in excess of £81m GWP, growth of 30% |
- | 32% revenue and 53% profit growth |
- | Attracting 20 new AR's- 14 start ups and 6 existing AR's |
- | Supporting 100 AR's across the UK |
- | Recruiting 25 new colleagues and implemented new apprentice programme |
- | Making a number of key hires including Senior Broking Manager & Quality and Compliance Director |
- | Building on previous years success and delivered a highly commended 2nd annual conference |
As a result, the company has achieved turnover for the year ended 31 December 2023 of £15,228,734 (2022: £11,685,916) and achieved profit before tax of £1,701,193 (2022: £1,113,742 ). As at 31 December 2023 the company had net current assets of £3,213,863 (2022: £2,187,070) and net assets of £3,483,872 (2022: £2,374,427). |
Key Performance Indicators |
Our strong financial position has enabled us to provide support to our AR partners in developing their businesses and managing their eventual exit. Our key financial performance indicators for the year ended 31 December 2023 are as follows: - |
2023 | 2022 | 2021 |
Revenue | £15,228,734 | £11,685,916 | £9,987,674 |
Net revenue | £6,121,653 | £4,479,100 | £3,808,636 |
Payroll costs | £3,161,821 | £2,481,205 | £2,145,010 |
Operating profit | £1,801,190 | £1,113,742 | £778,959 |
Net assets | £3,488,581 | £2,365,015 | £1,597,342 |
Employee numbers | 83 | 66 | 64 |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
STRATEGIC REPORT |
for the year ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Strategic |
We have gained market leadership in our sector however the success of the model has led to increasing competition and investment. During the year the longest established AR business in our market was taken over by a substantial US brokerage and we are likely to see this trend continue. Whilst the expanding marketplace creates opportunities, we remain vigilant of the need to continually develop the business model to retain our position. |
Financial |
We have built a strong financial position which has enabled us to invest in our and our appointed representative's businesses. We are increasingly identifying opportunities to provide funds to our (AR) partners to support their growth and assist in their long-term exit plans. This enables us retain business within Momentum and provide an added benefit to join our network. Exit funding will be an increasing feature as the older demographic amongst our membership consider their retirement plans. |
Cash management remains a strength and we have benefitted from increased interest rates as well as minimising our exposure to bad debts. |
Operational |
We undertake a substantial number of transactions and operational efficiency is critical to our business performance. Operating alongside a market leading software supplier we undertake a program of continuous improvement. This benefits all our trading partners and enables us to scale up the business to meet our growth plans. Alongside this the provision of high-quality management information enable us to mitigate risk and provide valuable insight for us and our partners. |
Our increased scale has enabled us to further enhance our relationship with our insurer partners. This enables us to provide superior propositions to our partners for the benefit of their clients. |
Governance |
Governance remains at the heart of our business model and we have built on our existing capability by recruiting a highly experienced Quality and Compliance Director to lead our governance function. The AR model continues to attract the scrutiny of the regulator and our adherence to the highest standards sets us apart from others in our sector. |
ON BEHALF OF THE BOARD: |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of insurance intermediary. |
DIVIDENDS |
Interim dividends of £179,485 (2022: £124,898) were paid during the year. The directors do not recommend payment of a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The principal financial instruments of the company comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance its continuing operations. Liquidity risk is managed by the use of bank balances along with efficient monitoring and forecasting of cash flow to ensure there are sufficient funds to meet liabilities. Trade debtors are managed in respect of credit and cash flow risk by policies monitoring the credit offered to customers, and regular monitoring of amounts outstanding for both time and credit limits. |
POLITICAL DONATIONS AND EXPENDITURE |
The company has not made any political donations during the current or preceding year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
AUDITORS |
The auditors, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MOMENTUM BROKER SOLUTIONS LTD |
Opinion |
We have audited the financial statements of Momentum Broker Solutions Ltd (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MOMENTUM BROKER SOLUTIONS LTD |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and the industry, we have identified that the principal risks of non-compliance with laws and regulations related to UK Tax legislation and with the Financial Conduct Authority, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included: |
- | Enquiries with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud. |
- | Challenging assumptions made by management in their accounting estimates, in particular in relation to volume bonus provisions and recoverability of the director's current account. |
- | Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined descriptions. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting in error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
PROFIT AND LOSS ACCOUNT |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,598,234 | 1,058,290 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Debtors | 10 |
Investments | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Capital redemption reserve | 16 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 990 | 1,599,547 | 1,365 | 1,601,902 |
Changes in equity |
Dividends | - | (124,898 | ) | - | (124,898 | ) |
Total comprehensive income | - | 897,423 | - | 897,423 |
Balance at 31 December 2022 | 990 | 2,372,072 | 1,365 | 2,374,427 |
Changes in equity |
Dividends | - | (179,485 | ) | - | (179,485 | ) |
Total comprehensive income | - | 1,366,032 | - | 1,366,032 |
Balance at 31 December 2023 | 990 | 3,558,619 | 1,365 | 3,560,974 |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (85,000 | ) | (170,000 | ) |
Movement in current asset investment | ( |
) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 15,970 |
Amount withdrawn by directors | (700,000 | ) | - |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
5,724,351 |
Cash and cash equivalents at end of year | 2 | 8,079,740 | 6,552,179 |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance income | (155,913 | ) | (13,407 | ) |
1,688,549 | 1,137,248 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 8,079,740 | 6,552,179 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 6,552,179 | 5,724,351 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,552,179 | 1,527,561 | 8,079,740 |
6,552,179 | 8,079,740 |
Liquid resources |
Current asset investments | 572,351 | (228,247 | ) | 344,104 |
572,351 | (228,247 | ) | 344,104 |
Total | 7,124,530 | 1,299,314 | 8,423,844 |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Momentum Broker Solutions Ltd is a limited company, registered in England and Wales. The company's registered number and office address can be found on the Company Information page. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company's functional currency and presentational currency is Sterling (£). The financial statements have been rounded to the nearest £1. |
Significant judgements and estimates |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Commission receivable |
Turnover from commissions receivable is recognised at the point of inception of the contract when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of the insurance contract to the insurer; |
- the amount of commission can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Other income including administrative fees and volume overriders is only recognised as turnover when the right to consideration is achieved and is capable of reliable measurement. |
Other operating income |
Other operating income relates to contributions from the Company's Authorised Representatives in respect of professional indemnity insurance and is recognised at the point of receipt. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Cost represents the purchase price together with any incidental costs of acquisition. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over the estimated useful life. |
Leasehold improvements | - | Over the life of the lease |
Computer equipment | - | 33.33% per annum on cost |
Fixtures and fittings | - | 20% per annum on cost and 10% per annum on cost |
Motor vehicles | - | 20% per annum on cost |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective |
evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying |
amount and the present value of the estimated cash flows discounted at the asset’s original effective interest |
rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods that have been acquired in the ordinary course of business from suppliers. |
Trade creditors are classified as current liabilities if payment is due within one year or less. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Provisions for liabilities |
Provisions for liabilities and charges are charged against profits. Provisions comprise the expected cost of professional indemnity insurance excess costs and are based the director's best estimate of potential future claims. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is |
recognised in the profit and loss account, except to the extent that it relates to items recognised in other |
comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
(i) Current tax |
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. |
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. |
(ii) Deferred tax |
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. |
Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. |
Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be |
recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the |
period end and that are expected to apply to the reversal of the timing difference. |
Foreign currencies |
At each year end foreign currency monetary items are translated using the closing exchange rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Operating leases |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Insurance broking |
As an insurance broker, the company acts as an agent in placing the insurable risks of their clients with insurers but is not liable as Principals for amounts arising from such transactions. The third party cash balances held in respect of these insurance broking transactions, due to both the underwriters and the insurance brokers, have been shown as assets and liabilities within the accounts as they provide the company with access to future economic benefits as defined within the financial reporting standards and UK GAAP. It is normal practice for insurance brokers to settle accounts with other intermediaries, client and insurers on a net basis. The company acts as an agent of insurance companies in broking and administering insurance products and is liable as a principal for premiums due to those underwriters. The company has followed generally accepted accounting practice for insurance brokers by showing cash balances relating to insurance business as assets and liabilities of the company itself. Revenue is recognised on such agency arrangements. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary |
shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Investments |
Fixed asset investment and current asset investments are stated at cost less provision for diminution in value. |
Fixed asset investments consist of bank balances that are due to mature in over 12 months at the point the deposits are made. |
Current asset investments consist of bank balances that are due to mature in over 3 months but less than 12 months. |
3. | TURNOVER |
The total turnover of the company for the period has been derived from its principal activity wholly undertaken in the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,783,830 | 2,162,829 |
Social security costs | 256,204 | 218,717 |
Other pension costs | 121,785 | 99,659 |
3,161,819 | 2,481,205 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Broking | 48 | 43 |
Directors | 5 | 5 |
Other | 23 | 18 |
76 | 66 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Key management personnel compensation |
The directors deem the key management of the company to include directors only. |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Taxation compliance services |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | - |
Deferred tax movement | - | (3,236 | ) |
Total tax charge | 435,161 | 216,319 |
7. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | and | Motor | Computer |
improvements | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors |
Directors' current accounts | 700,000 | - |
Tax |
Prepayments |
11. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Unlisted investments |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
Unpaid pension contributions included within other creditors amount to £24,005 (2022: £17,545). |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
14. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 9,668 | 9,668 |
Professional Indemnity |
Insurance excess | 50,000 | 50,000 |
Deferred | Insurance |
tax | Excess |
£ | £ |
Balance at 1 January 2023 |
Balance at 31 December 2023 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 990 | 990 |
16. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 2,372,072 | 1,365 | 2,373,437 |
Profit for the year | 1,366,032 | - | 1,366,032 |
Dividends | (179,485 | ) | - | (179,485 | ) |
At 31 December 2023 | 3,558,619 | 1,365 | 3,559,984 |
MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
17. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The directors loan account is interest free and is expected to be repaid within 12 months of the advance. |
18. | RELATED PARTY DISCLOSURES |
During the year the company provided insurance totalling £nil (2022: £762,800) to a company with a common director. This resulted in commission totalling £nil (2022: £32,281). At the year end, a balance of £nil (2022: £nil) was due from the related party. |
19. | CASH AT BANK AND IN HAND |
The Company is regulated by the FCA. As required by the FCA, client monies are held in non-statutory trust client bank accounts. The use and governance of the balances held within these accounts are determined by the trust deed and by the FCA's client asset rules source book (CASS). At the year end the amounts held in non-statutory trust client bank accounts was £6,500,151 (2022: £5,360,574). |